Manufacturing, Infrastructure Drive December Construction Starts
Single-family starts dropped 5% while multifamily starts gained 8%.
Nonresidential building starts led the way in an overall up month of December for construction starts, according to a new report from Dodge Construction Network.
That segment gained 51% while total construction starts jumped 27% in December, and for 2022 in its entirety, total construction starts were 15% higher than in 2021.
Nonresidential building starts rose 38% over the year, nonbuilding starts were up 19%, and residential starts were down 3%.
“December starts revealed where the current strength in the construction lies: manufacturing and infrastructure,” Richard Branch, chief economist for Dodge Construction Network, said in prepared remarks, noting that these two categories “will provide insulation for the sector as the economy softens in 2023.
“Recession or not, higher interest rates will weigh on the economy and restrain construction starts in 2023. However, it’s encouraging to know that the new year is starting with a great deal of positive momentum.”
Residential building starts were flat, with single-family starts losing 5% and multifamily starts gaining 8%. Residential starts were 3% lower in 2022 when compared to 2021.
Nonbuilding construction starts rose 30% in December led by a transmission line project in New York state and others in Louisiana and Illinois that boosted the utility/gas category.